Big leap for Reliance IndustriesTo acquire 40 per cent stake in US gas project for $1.7 bn
New Delhi, April 9
Making a breakthrough in the US, Reliance Industries today said it would invest $1.7 billion in a joint venture with Atlas Energy Inc to produce gas from shale, sedimentary rocks, in the Marcellus region.

BGR power project for Orissa
Mumbai, April 9
BGR Energy Systems today said it had entered into an agreement with the Orissa government for setting up a 1,320-MW power project at an investment of Rs 6,287 crore.

3G auction gets off to smooth start
New Delhi, April 9
For the nine telecom companies, which have put in their bid for the auction of the 3G spectrum, today was the start of the day from where they will feel more pressure on their finances and possible mergers and acquisitions.

Health drink on Tata-Pepsi menu
Mumbai, April 9
The Tatas and Pepsico today agreed to explore the possibility of a joint venture in non-fizzy soft drinks like juices.

India No. 2 in auto sales
New Delhi, April 9
Buoyed by the government stimulus and a low rate of bank interest on loans, automobile market achieved a never-before feat in the last financial year jumping to become the world second fastest growing market after China.

India to be hub for Amway exports: MD
Baddi, April 9
India will be the hub for exports of all Amway products to countries in South East Asia. The company plans to set up its manufacturing base here so that it can cater to the demand in Thailand, Malaysia, Australia, Africa and Europe.

HDFC Life IPO next year likely
New Delhi, April 9
HDFC Standard Life Insurance, which aims to break even by March 2012, today said it was planning to come out with an initial public offer early next year.

New Delhi, April 9
Making a breakthrough in the US, Reliance Industries today said it would invest $1.7 billion in a joint venture with Atlas Energy Inc to produce gas from shale, sedimentary rocks, in the Marcellus region.

The investment would be scaled up to $3.5 billion over the next 10 years, RIL CFO Alok Agarwal said.

Reliance will take 40 per cent stake in the about 3,00,000 acres Marcellus shale gas project, which spans parts of Pennsylvania, West Virginia and New York and could hold enough natural gas to satisfy US demand for a decade.

Nasdaq-listed Atlas will hold the remaining 60 per cent and also the operatorship. RIL had earlier unsuccessfully bid for acquiring controlling stake in bankrupt chemical maker LyondellBassel.

Flush with revenues from its eastern offshore KG-D6 gas field back home, the Mukesh Ambani-run firm has been on the lookout of acquisitions in the United States. Separately, its twin refineries at Jamnagar in Gujarat are looking at directly selling fuel into the US.

"Reliance Marcellus LLC (a subsidiary of RIL) has executed definitive agreements to enter into a joint venture with Atlas Energy Inc... Under which Reliance will acquire a 40 per cent interest in Atlas' core Marcellus Shale acreage position," the company said in a statement.

The Indian firm will pay $ 339 million in cash to close the deal and foot Atlas' drilling cost of up to $1.36 billion.

"The (300,000 acres) acreage will support the drilling of over 3,000 wells with a net resource potential of about 13.3 trillion cubic feet gas equivalent," the RIL statement said, adding that the deal was expected to be closed by the month-end.

Shale gas is natural gas stored in organic-rich sedimentary rocks. It is considered an unconventional source as the gas may be attached to or "adsorbed" onto organic matter. The gas is contained in difficult-to-produce reservoirs that require special completion, stimulation and/or production techniques to achieve economic production.

In addition to funding its own 40 per cent of drilling obligations, Reliance has agreed to fund 75 per cent of Atlas' respective portion of drilling and completion costs until the $1.36 billion drilling carry is fully utilized, Atlas said in a separate statement.

"Under the framework of the joint venture, Atlas will continue acquiring leasehold in the Marcellus region and Reliance will have the option to acquire 40 per cent share in all new acreages," Reliance said. —
PTI

Reliance Industries has informed oil regulator Directorate General of Hydrocarbons (DGH) that four smaller gas finds surrounding the D-1 and D-3 fields in the Krishna-Godavari basin can be commercially exploited.

RIL on February 19 informed the DGH that four smaller gas finds, surrounding the D-1 and D-3 fields, which are currently producing around 62 mmscmd of gas, can be commercially exploited, sources in know of development said.

RIL estimates that four smaller gas finds in the prolific KG-D6 block may contain 1-2 trillion cubic feet of reserves and may help prolong peak output of 80 million standard cubic metres per day (mmscmd) from the block, sources said.

RIL has so far made 25 oil and gas discoveries in KG-D6, of which two, D1 and D3, have been put on production at an investment of $ 8.836 billion. Besides D1 and D3 gas fields and MA oil discovery, nine other gas finds were previously declared commercial and now four more may be added to the list. — PTI

Mumbai, April 9
BGR Energy Systems today said it had entered into an agreement with the Orissa government for setting up a 1,320-MW power project at an investment of Rs 6,287 crore.

The company has signed a memorandum of understanding (MoU) with the Orissa government for setting up a 1,320 MW independent power producer at Bhapur in Nayagarh district at an investment of about Rs 6,287 crore, BGR Energy Systems said.

The MoU was signed by chairman and managing director BGR Energy Systems B G Raghupathy and Energy Secretary P K Jena on behalf of the Orissa government.

The proposed project would be implemented by a special purpose vehicle, it said.

As per the MoU, the state government would assist the project with land acquisition, water, mandatory clearances and also facilitate allotment of captive coal blocks to be utilised for the it.

Besides, the state government is entitled to purchase 12-14 per cent power generated from the plant at a variable cost as determined by the Orissa Electricity Regulatory Commission.

The plant is scheduled to be commissioned in 54 months and is expected to provide direct employment to more than 1,200 people. — PTI

New Delhi, April 9
For the nine telecom companies, which have put in their bid for the auction of the 3G spectrum, today was the start of the day from where they will feel more pressure on their finances and possible mergers and acquisitions.

As e-auction for the 3G services got underway this morning smoothly, experts were of the opinion that this would be a major turning point in the Indian telecom sector with the winners taking all.

The losers may have little option but to bow out and sell the business to bigger rivals, as and when the government allows mergers between domestic telecom companies.

As many as nine telecom companies -- Bharti Airtel, Reliance Communications, Vodafone Essar, Idea Cellular, Tata Teleservices, Aircel, Etisalat, S Tel and Videocon Telecommunications -- are participating in the online auction process across 22 circles simultaneously where three to four slots are available.

The auction will be held from 9 a.m. to 7.30 p.m. on all days, except Sundays and national holidays.

The experts said the auction could take days to complete as there was likely to be intense bidding with operators playing hard at protecting their geographical strongholds.

Mumbai, April 9
The Tatas and Pepsico today agreed to explore the possibility of a joint venture in non-fizzy soft drinks like juices.

Tata Tea, which in 2007 sold minority stake in Energy Brands (Glaceau) to Coca-Cola for $ 1.2 billion, said its board has approved a non-binding MoU with PepsiCo Inc for exploring a joint venture in the non-carbonated beverage business.

Globally, beverage makers are shifting focus to health and wellness drinks, and PepsiCo chief Indra Nooyi, during her recent visit to India, had said she expected health drinks to contribute 50 per cent of the company's total sales in the coming years. "The proposed joint venture is not intended to conflict with any existing arrangements of the parties. The transaction will be subject to corporate and statutory approvals as may be required," Tata Tea said.

The size of the energy drink market in India is currently estimated at about Rs 500 crore and could double to over Rs 1,000 crore by the end of this year, as per market research firm Datamonitor Plc.

Tata Tea is already a leading player in the global beverages market with presence in over 40 countries. Besides tea brands, Tata Tea has under its belt natural mineral water brand Himalayan and 'T!ON', an energy drink made from fruit juice, tea extracts and ginseng. — PTI

New Delhi, April 9
Buoyed by the government stimulus and a low rate of bank interest on loans, automobile market achieved a never-before feat in the last financial year jumping to become the world second fastest growing market after China.

With the growth in sales in 2009-10 pegged at 26.41 per cent over the pervious financial, the growth was also visible with all automobile manufacturers also posting their highest-ever sales.

According to the figures released by the Society of Indian Automobile Manufacturers (SIAM), total vehicle sales in India in the last fiscal were at 1,22,92,770 units compared to 97,24,243 units in the previous financial year. SIAM has forecast 10-14 per cent growth for the industry during 2010-11.

There was also a massive jump in the exports of vehicles from the country. Passenger car exports from India touched 4,41,710 units in FY'10 against 3,31,535 units in the previous financial year a jump of 33.23 per cent over the last fiscal.

According to Goenka, a variety of factors, including the stimulus package, lower interest rates, implementation of the 6th pay commission and new model launches, helped the industry register the growth. As a result of the sales achieved by the automobile manufacturers last year, India has become the second fastest growing market after China that had a 42 per cent growth.

The Mecca for car manufacturers, Germany came in third with 23 per cent growth even as many other markets in the world witnessed a negative growth.

Sales in the domestic market were driven mainly by the car and the two-wheeler segment that posted 25.10 per cent and 26 per cent increase, respectively. Domestic passenger car sales rose to 15,26,787 units from 12,20,475 units in the April-March period of the earlier fiscal.

During this period, Maruti Suzuki and Hyundai Motors witnessed a major jump in sales. While Maruti saw its sales jump 20.23 per cent at 7,65,526 units, its rival Hyundai Motor's increased 29.07 per cent at 3,14,967 units. Tata Motors witnessed a rise of 25.54 per cent at 2,01,399 units, SIAM said.

Hyundai Motor India witnessed an export growth of 12.75 per cent at 2,85,658 units compared with 2,53,344 units in the year-ago period. Maruti Suzuki India was a distant second, registering an over two-fold jump in overseas sales at 1,46,156 units in 2009-10 against 68,835 units in the previous fiscal.

Baddi, April 9
India will be the hub for exports of all Amway products to countries in South East Asia. The company plans to set up its manufacturing base here so that it can cater to the demand in Thailand, Malaysia, Australia, Africa and Europe.

This was revealed by MD and CEO of Amway Bill Pinckney, while talking to mediapersons here today. “Our aim is to make India a hub for exports. The decision will be taken in the next six months on whether we will build own and operate a facility, or if we will get our goods manufactured on contractual basis,” he said.

Pinckney said as of now, Amway had three manufacturing facilities - in the USA, China and India. “As of now, China and India manufacturing facilities cater to the domestic demand only. But as we expand our business, we are looking at starting exports from India. Also, our e-commerce business has started picking up and we now have sales worth Rs 12 crore on this site. As this business expands, we will need to increase our production capacities here,” he said.

“We have a range of 115 products, which are manufactured through seven contract manufacturing facilities in India. As business expands, our contract manufacturing facility here, Sarvottam Care, too, has tripled its production capacity.,” he added.

The MD said they also proposed to increase the number of touch points (points of sale) of the company from the present 130- 300 and the number of experience centres from the present 10 to 15 in the next two years. “Since 70 per cent of our business is through these touch points, we are looking at expanding these,” he said.

Pinckney said the company would also introduce about five new products - mainly in the beauty and nutrition and wellness segment. “These are our fastest growing segments. The focus will be on children nutrition and lifestyle nutrition products. With all these initiatives, we hope to increase our turnover from Rs 1,407 crore in 2009 to Rs 2,500 crore by 2012,” he said.

New Delhi, April 9
HDFC Standard Life Insurance, which aims to break even by March 2012, today said it was planning to come out with an initial public offer early next year.

"We are hoping to come out with an IPO in the early part of next year (2011)," said HDFC Standard Life Insurance MD Amitabh Chaudhary.

But before it can come out with its IPO, Chaudhary said the company would have to wait for guidelines from the Insurance Regulatory and Development Authority. At the same time, disclosure norms and guidelines on embedded valuation were also expected to be issued by the government, he said.

These rules were expected to be out in the next 6-9 months, which would help in taking a view on the IPO, he said. In addition, there was anticipation that the government would take a view on raising the FDI ceiling in the insurance sector to 49 per cent from the current 26 per cent, which would open the field for more foreign investment.

HDFC Standard Life is a 74:26 joint venture between the HDFC and UK-based Standard Life Insurance. —
PTI

Videocon mobile services in Mumbai
Mumbai: Videocon's mobile services were launched in Mumbai today at a glittering event by the Mumbai Indians IPL team. Among those present on the occasion included Mumbai Indians captain Sachin Tendulkar, team owner Nita Ambani and chairman of the Videocon group Venugopal Dhoot. —
TNS

Rural banks meeting
Chandigarh: A review meet for select regional rural banks of the country for implementation of the Prevention of Money Laundering Act (PMLA), 2002, was organised by Nabard at its regional office here today. The meet was chaired by S.C. Kaushik, CGM, Nabard, Punjab Regional Office. He stressed the need for banks to be vigilant while dealing with customers. —
TNS

AOC unveils LCD TV
NEW DELHI: AOC, the in-house brand of TPV Technology, has launched a brand new series of AOC LCD TV and AOC “All-in-One PCs”. AOC’s LCD TV series, called “Nautilus”, has been launched in 22” /26” /32” and 42” screen sizes. AOC plans to pitch in the entry level full feature 22” LCD TV at an attractive price point of Rs 13,000. —
TNS

Forex reserves at $279 bn
Mumbai: The foreign exchange reserves rose by $ 2 billion to $ 279.096 billion for the week ended April 2 as against $277.042 billion in the previous week. Foreign currency assets, during the week, marginally went up to $ 254.730 billion from $252.755 billion in the previous week, the RBI said in its weekly report today.—
PTI

Jet fare hike on cards
Mumbai: Jet Airways today said it would raise fares by 10-15 per cent as early as this month to offset rising jet fuel prices, a decision that possibly stems from confidence about returning passenger demand. —
PTI

Shree Ganesh opens in red
Mumbai: Shree Ganesh Jewellery House today listed with a discount of 0.44 per cent at Rs 258.85 on the BSE. After opening weak on the BSE, shares of Shree Ganesh Jewellery House fell by 26.46 per cent to Rs 191.20 over its issue price of Rs 260. —
PTI